"This is not a year that anyone will look back upon fondly. At the start of the year, I visited several hospitality and tourism businesses across South Devon who were looking forward to a successful season. A season they hoped would, cement investment into the area, encourage tourism and ensure high levels of employment. Sadly, as we all know, it has not turned out the way we expected, but it has not been a complete write-off.
Hope gave way to desperation and after literally hundreds of calls with businesses both before, during and after lockdown I know how difficult it has been. That said, I am pleased to hear that so many have recouped some of their losses since reopening on the 4th July. Many are set to turn a profit at the end of this financial year.
Undoubtedly, the impact of the ‘Eat Out to Help Out’ and the furlough schemes coupled with a reduction in VAT to 5% have had a significant positive impact on our businesses. The UK Government’s further support through the small business grant has also gone a long way. It is reassuring to know that many of those businesses who feared so much for their future will see out this year with capital in their accounts and a better than odds chance of survival.
Whilst we should celebrate this turnaround, we must also be aware of the all too immediate dangers that we may be facing this winter. A long winter accompanied by a second wave and a drop in demand would greatly impact this vital sector, it is essential that we are prepared. The Government, and the Chancellor, Rishi Sunak MP, are all too aware of those potential pitfalls.
This week, I will be taking part in a tourism and hospitality debate discussing the future levels of support that might be available to this industry. I will be calling for the following measures:
Firstly, an extension to the 5% VAT level. Currently, this tax cut is due to expire on 13th January 2021. If it were maintained, not only will find ourselves in line with Europe but we can also provide extra financial breathing space for those businesses who have been so badly impacted.
Secondly, developing our skills and employment opportunities. The recently announced ‘Kickstart Scheme’ offers the chance for those new and established businesses to take advantage of the Government’s programme to cover wages for young people who are currently on Universal Credit. The scheme, opened to those aged between 16 and 24, for up to six months also offers £1,500 to employers for the costs they may face with new employees. This package of support should be utilised to enhance and develop our service sector and bolster its standing in the employment hierarchy. The South West has been in high demand over the summer, lets create a service sector that is the envy of the UK.
Finally, ‘Made in Devon’ is perhaps the most wasted brand in the country. When you look over to the greater South West and see the success of the Cornish brand is it any wonder that people feel that its jam first, not cream! We need to build a Devon brand so that not only is our produce stamped with a recognisable and iconographic image that symbolises all the many brilliant parts of our county but also attracts investment and development.
There are huge hurdles to cover in the coming months, we are not oblivious to them, but we can together cover the ground and find ourselves with a stronger sector than ever before. "